Canadian Wheat Board and Ontario Wheat Producers Marketing Board
Two very different situations
Why are western farmers deeply concerned about losing the Canadian Wheat Board, their single desk
marketing agent, when Ontario farmers recently chose to end theirs? The two situations are completely
different. Anyone who attempts to say they are the same is simply ignoring the facts.
1. Ontario Farmers decided on changes their marketing system, not the federal government. The
Ontario Wheat Producers Marketing Board was started by farmers in 1958 to obtain better prices when
they sold their crops to flour mills each fall. In a 1973 two-thirds majority vote they decided make their
board into a single desk selling agency. In a process starting in the late 1990s, their farmer-elected board
of directors began a transition towards an open market, which was completed in 2003. The OWPMB
merged with the corn and soy producers association in 2010, and now operates a marketing pool through
the Grain Farmers of Ontario.
2. Western wheat production is ten times that of Eastern Canada (Ontario, Quebec and the Maritimes
combined). The graph below illustrates the difference in total amount produced in the two areas. In
addition, wheat is a smaller crop on individual Ontario farms, where soybeans and corn are the primary
cash crops. Thus, the impact on Canada and on prairie farmers from changes to the CWB is much greater
than the impact of changes to the Ontario system.
3. The Ontario wheat business is completely different from the western Canada’s
Ontario produces soft wheat used for pastry, cookies, donuts, etc.
Prairie farmers produce hard red spring wheat for bread-making and durum for pasta.
Ontario produces less than 10% of Canada’s wheat, the Prairies produce 80%.
Most of Ontario’s wheat is sold within Canada or in the northern USA (65% + 25% = 90%), while
most of the Prairie wheat is exported (68%), with 13% of it being sold and processed domestically
Ontario flour mills rely on prairie wheat for bread flour.
4. US-Canada trade in wheat is relatively low. Ontario farmers benefit from the difference in grading
where the US allows higher levels of fusarium infection in its milling wheat than Canada does. As a result,
Ontario farmers could increase exports when US farmers had high fusarium levels. However, the graph
below shows that compared with what it produces, the USA imports a relatively small amount of wheat,
and its exports nearly equal Canada’s total production. The current Ontario exports into the US market are
significant for Ontario wheat growers, but it is unlikely that the US would take additional Canadian wheat
unless the price of Canadian wheat was reduced to the point it could replace their domestically grown
wheat, allowing the USA to export even more. The CWB seeks high end markets for high quality milling
wheat and durum in over 70 countries, and does not have to pursue markets by reducing its prices